The reserve requirement is 15%. The bank currently has liabl

The reserve requirement is 15%. The bank currently has liablities of $50,000 deposited in the checki… Show more The reserve requirement is 15%. The bank currently has liablities of $50,000 deposited in the checking accounts. Of this the bank lent of $35,000 and purchased $8,000 in treasury bonds. This bank can do what? Income is 90 and savings is 2. Then income increases to 100 and consumption is 97. What will the marginal propensity to consume be? If the full employment level of output is 90 billion and the current level of output is 120 billion, under the fiscal policy, the government should do what? The full employment level of output is 60 billion. The current GDP of output is 90 billion. The federal reserve when using the monetary policy should do what? Given an MPC of .8, if the equilibirum level of aggregate expenditure is 80 billion and there is a reduction in consumption of 2 billion, what will the new equilibrium level of aggregate expenditure be? • Show less